ECB In Action Again to Buy Euro-Zone Bonds

11/17/2011 8:33AM

On another tense morning in the European bond market, France and Spain were able to raise funds they but they both had to offer yields above and beyond normal levels. Dow Jones's Terence Roth and Martin Essex discuss the latest events.

This transcript has been automatically generated and may not be 100% accurate.

I ... it's a small dinghy in European bond markets ... both funds and Spain ... both trying to raise funds they got what they needed ... but it cost them a lot of money ... evincing see that these costs and continued to rise to see one through what's been going on in these markets this morning ... with me is Martin Essex ... and into her Terry Roth puzzle Teddy ... Wilson results aam ... with a bath iBall with a Relia symbol had that medians Bassam investors are still willing to pub of the peripherals ... well seen from investors or to view it looks like a very good investment firm but the ... isthe because you're so ... the yields are are very hard but from Spanish port of Europe reported view of the eurozone it said pre much a devastating result they are paying ... just under seven percent for the daily ... there my ... view is that the Italians and said it is raising all kinds of questions of ... his spring quarter run into the same kind of political turmoil that that that part of question marks over to ... in other words they the village and the whole thing and of course he added elections in Spain this week entitled to his big Sea island wanted actually audited shifting ... into on investment sentiment but for the moment doesn't look as if these ... cost of ... debt of rage continued to rise to one of the Grigory have an indication about a half hour ... the secondary market after the auction showed a continued sell off in Spanish government bonds ... and the continued even after the ECB the Sisters of purchasing the book ... to mark the city's bid and then delete the these parts is Bencik with heavy or light it does look as if the ECB is able to peel pullback the top of the market so it's been some form or more in the first break the cap opportunity recap pullback now they don't want the markets to ... to to to to slide ... obviously they are not doing as much as some European governments would prefer that they would do ... you know there's a big debate going on now between ... Italy ... and Germany and other European go for some whether the drug maker to prove ... ECB to really become a lender of last resort ... and to make these bond purchasing program both permanent and deeper ... Lawson essentially this ... crisis is using the depot and he told ... the Palm ... told you that in that world with the fermentum up it's a simple one and from the swollen area festival that was the Spanish bond auction they regarded the price that people have to pay as being too hard ... but it was a lot of factors in here is well with that said stockmarkets Town the disabled deals up to this and the euro debt and it ... it just seems like an ongoing crisis is now spreading because people are also worried about America now ... because Fitch warned yesterday about the risks to U S banks this'll to this super committee that that seems to be deadlocked in trying to solve the U S debt crisis it's everywhere you look not just in Europe there are problems ... oh what about zombie also be haven't downgraded the German bunds and on this on the ... Lyxor Tabak's and Johnny basins to be downgraded by Moody's is that what is this thing hasn't the looks of its ok not Saskin this summer that all of it's becoming very much about the problem once again is not the case that ... while yes he did we are looking at a bank liquidity problems some remember to fascinate the post Lehman squeeze that we had ... that Alfac discussion we do receive money market rates continue to tighten little bit so for some the same symptoms it was and it didn't take a table money to buy themselves a lot of guts because don't get ... all the stalls all the government debt as collateral being used for Baral new cards to bring these two crises can use as a back problem and as the sovereign debt problem and then decided to start is a sign calling ... for a few of them that if the sovereigns or improper in trouble some of the banks of bonds in trouble so is this over ... the long one can tell you that this ... is so far this time had that and UPS is lovely has insisted that its downgrade ... of the banks in Gemini is that ... the gems of the week it was some sense that a bailout ... the sovereign governments of Italy and prawns ... this to continue what to do ... all ... they bail out their own banks because they come really do both in the coming of of one or try to afford or don't for for too long now ... remember when the reasons why journalists of the Allied this holiday they actually work against ... I'll get the debt relief to Greece because it accepted ... by the bike out of the balance sheets German banks Ditto in France as well ... have been worried that any transfer Frumes from Germany to the periphery ISP's can be aided by the German versus the German politicians know this ... I know that they call it the way that this was the Gemin public one put up with money going ... to to these peripheral countries they might just put up with the money going to save German banks but even that's debatable ... study ... there's no sign of extra money coming from Brell ... Amin the Europeans that was all this was the cells and in what I did Tata Chinese leaders look like this ... particularly on ... the jet was mostly really looks like Affiliates an extra for parents that they have both for our borrowing requirement next year four hundred forty billion ... euros ... for just seven percent ... Whit which ... represents unsustainable golden egg so the next step is most likely the IMF come again ... with the bailout program a massive infusion of funds given certain conditions were much like the traditional IMF ... program maybe as early as the first half next year profit from the earlier in the ... meantime we'll just ... wait and see how high the Eels was ALU the Europol it's ... a lot to both thank the much indeed